Hair care company Olaplex (NASDAQ:OLPX) will be announcing earnings results tomorrow before the bell. Here’s what to look for.
Olaplex met analysts’ revenue expectations last quarter, reporting revenues of $103.9 million, down 4.8% year on year. It was a slower quarter for the company, with a miss of analysts’ gross margin and EBITDA estimates.
Is Olaplex a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Olaplex’s revenue to grow 2.4% year on year to $126.5 million, a reversal from the 30% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Olaplex has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Olaplex’s peers in the personal care segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Herbalife’s revenues decreased 3.2% year on year, missing analysts’ expectations by 1%, and Medifast reported a revenue decline of 40.6%, topping estimates by 1.5%. Herbalife traded up 10.2% following the results while Medifast was also up 8.6%.
Read our full analysis of Herbalife’s results here and Medifast’s results here.
Investors in the personal care segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Olaplex is down 18.8% during the same time and is heading into earnings with an average analyst price target of $2.56 (compared to the current share price of $1.82).
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